Dutch institutional investors such as pension funds, investment funds and insurers kept their investments in risky bonds roughly the same over the past 12 months. This is a break from previous years: since 2019, large investors had expanded their exposure to what are termed high-yield bonds.Read more
Dutch household portfolio investments rise in value again
The value of portfolio investments held by Dutch households continued to increase in the second quarter of 2023. The total value of portfolio investments at the end of June was €165.9 billion, an increase of €5.1 billion (+3.2%) compared to the previous quarter. The rise was driven entirely by share price gains.
Published: 22 August 2023
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This rise in value follows an earlier increase of €7.7 billion in the first quarter (+5.0% quarter-on-quarter). Overall, the total value of portfolio investments held by Dutch households rose for the third quarter in a row, following sharp losses during the first nine months of 2022.
Value of shares and investment funds rise with stock market
The value of listed shares owned by Dutch households rose by €1.6 billion (+2.9% quarter-on-quarter) to €57.2 billion. The shares booking the greatest increase in value in the investment portfolios were Tesla (+€185 million), ING Group (+€153 million), Aegon N.V. (+€145 million), Shell PLC (+€143 million) and Microsoft (+€139 million). The increase was due to rising stock exchange prices, particularly in June. In total, households sold a net €168 million worth of equities in the second quarter of this year. The AEX index rose 2.4% to 774 points in the same period.
Positions in investment funds increased by €3.0 billion (+3.0% quarter-on-quarter) to €103.1 billion.
Bond holdings at highest level since end 2017
Bond holdings among Dutch households rose to €5.6 billion in the second quarter of 2023 due to net purchases of €548 million, bringing these investments in debt securities to the highest level since the end of 2017 (then €5.9 billion). A potential explanation for this is the higher interest rate, which increases the yield for investors when purchasing new bonds.
Household portfolio investments viewed in perspective
According to figures from Statistics Netherlands (CBS), there are 8.3 million private households in the Netherlands. Of these, 1.9 million invest, according to research (in Dutch) conducted by the Dutch Authority for the Financial Markets (AFM).
The total securities holdings of Dutch households consist of listed shares (€57.2 billion), investment fund positions (€103.1 billion) and debt securities (€5.6 billion), totalling €165.9 billion. By comparison, savings deposits in accounts held by Dutch households amounted to €447.7 billion at the end of June 2023.
Dutch households also hold substantial assets with pension funds, insurers, in their own enterprises and in the housing market; these assets have been excluded from this analysis.
Dutch households suffered losses on their portfolio investments in the third quarter of 2023. Overall, the value of portfolio investments fell some €3.6 billion (-2.1%) from a quarter earlier, to €162.4 billion.Read more
Dutch pension funds are increasingly investing their assets in foreign investment funds. Whereas their holdings in Dutch investment fund units have been declining for some time, an increasing share of their assets is being allocated to foreign, especially European, investment funds.Read more